Flutter reports 46% rise in revenue for Q1
Flutter saw strong US growth as it prepares for its dual listing.
UK.- London-listed Flutter Entertainment has reported strong Q1 results, with revenue up 46 per cent year-on-year at £2.4bn. Sports betting revenue rose 61 per cent to £1.49bn and igaming 44 per cent to £916m amid rapid US growth and an expansion of Flutter’s international business through its acquisition of Sisal.
Flutter’s brands combined for an average 12.3 million monthly players (AMPs) in the quarter. The strong results come as Flutter prepares for a dual US listing for FanDuel by Q4 of this year. FanDuel’s revenue grew by 92 per cent in the last quarter reaching £908m, with customer numbers growing by 1.5 million and sportsbook revenue up 147 per cent. Flutter said the business remains on track to become profitable this year.
FanDuel’s US sports betting handle was $10.9bn, accounting for 60 per cent of all sports betting stakes for the group. The last quarter saw launches in Ohio and Massachusetts, with FanDuel becoming the market leader in both states. It says it now has 50 per cent market share.
Group CEO Peter Jackson said: “In the US, the combination of the FanDuel Advantage and the Flutter Edge drove further market share gains. We added over 1.5 million customers in the quarter and we remain the clear market leader. Our US sports betting handle of $10.9bn represented almost 60% of the Group’s total sportsbook stakes.”
He added that the upcoming US listing, which has been approved by shareholders, will open access to strategic and capital markets benefits that “will position the group well for its next phase of growth”.
Flutter’s UK and international performance
Back in the UK, Flutter’s legacy brands still did better than expected, with revenue up 17 per cent at £608m as it shifts its focus to recreational customers. Paddy Power retail revenue was up 15 per cent at £77m following post-COVID normalisation and strong customer engagement.
Jackson said: “In the UK, the publication of the white paper has vindicated the proactive actions we have taken to further embed safer gambling across our organisation through our Play Well strategy. The changes will bring consistency to safer gambling protections for customers and make responsible play a priority across all operators, which we strongly support.”
As for international performance, the acquisition of Sisal in August last year saw revenue grow by 69 per cent to £605m. Sisal’s revenue in Italy rose by 19 per cent via cross selling from retail to online and a record SuperEnalotto jackpot. The Sisal acquisition also brought in a 107 per cent rise in revenue from Turkey. Only Flutter’s Sportsbet Australia brand saw revenue decline, down 4 per cent pro-forma at £289m.
Jackson said: “The group delivered a very strong Q1 performance with pro forma revenue growth of 29% achieved through continued execution against the group’s strategic priorities.
“We continued to take share across our UK and Ireland and International businesses while in Australia we did an excellent job defending our leadership position. We remain delighted with the progress of Sisal since the acquisition in August 2022.”
Reaction to UK gambling white paper
Meanwhile, Flutter has largely welcomed the UK government’s gambling white paper, though it’s estimated that proposals will cost it between £50m to £100m from 2024. Jackson described the paper as “a significant positive moment for the UK gambling sector, raising standards and bringing the regulatory framework into the digital age”.
He said: “We believe proactive change will lead to a better future for our industry and have introduced industry-leading safer gambling controls via our Play Well strategy over the last few years, including setting mandatory deposit limits for customers under 25, reducing online slots staking limits and making material investments in our safer gambling operational capabilities.”